Dana Hits Paydirt with New Oil Discovery in Egypt
Monday, June 30, 2008
Dana Gas has announced a discovery from a new oil zone in its Egyptian concessions, marking the first discovery in the company’s US$ 170 million drilling campaign for 2008.
Drilling of the Al Baraka-2 well in the Komombo concession, where Dana Gas made its first commercial oil discovery last year, has been completed. The new well confirmed the first discovery, Al Baraka-1, in the Abu Ballas formation, and proved a new discovery in the underlying Six Hills formation.
“This is the first discovery for Dana Gas in its major drilling campaign for this year,” said Ahmed Rashid Al Arbeed, Executive Director, Upstream. “We hope such discoveries continue to build company revenues and profitability, particularly in light of current high oil prices.
“In the coming weeks, Dana Gas will perform hydraulic fracturing of the producing reservoirs in two wells, Al Baraka-1 and Al Baraka-2, to enhance their productivity,” said Al Arbeed.
“In addition to this discovery, we have commenced drilling of the West Baraka-1 exploration well in a new prospect in the Komombo concession, with completion expected before the end of next month, and are in advanced stages of drilling deeper gas exploration wells in our Nile Delta acreage, with results expected soon,” added Dana Gas Egypt Country Director Dr. Hany Elsharkawi.
“The recent oil discoveries made by Dana Gas in Upper Egypt, are of great importance as they prove the presence of a hydrocarbon system for the first time in the history of the area,” continued Dr. Elsharkawi. “It certainly enhances the chances of proving large oil reserves in this part of the country which will positively impact the prosperity and the well being of the region and its residents, for the benefit of the Egyptian economy as a whole,” said Dr. Elsharkawi.
Dana Gas is the sixth largest natural gas producer in Egypt today. A report by the Middle East Economic Survey (MEES) confirmed that Dana Gas was the only private company from the region to make new Middle East oil and gas discoveries in 2007. The company announced earlier this year that it would embark on a US $170 million drilling program covering 15 exploration wells and four development wells in 2008.
Meanwhile, Dana Gas is currently leading a consortium to build and operate an LPG extraction plant from the gas in the Ras Shukeir area of the Gulf of Suez, in partnership with the Egyptian Natural Gas Holding Company (EGAS) and the Arab Petroleum Investment Corporation.